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AMR Threatens To Void Contracts

Kevin Harber
(cc) flickr

Bankrupt AMR, parent company of American Airlines, has told its unions that without more concessions, it will move to cancel all contracts next week in court.

KERA’s Bill Zeeble reports unions don’t like the plan, but may have little recourse.

Senior Vice President Jeff Brundage sent the letter to unions saying the company and unions have not made sufficient progress in saving money. Without more concessions, American spokesman Bruce Hicks says the company will ask the court next week to cancel all contracts.

Hicks: Our preference remains to reach consensual agreements and there is still time. but it must be done quickly and decisively.

The company says it’s been willing to meet and talk at any time since filing for bankruptcy, and it’s been flexible in negotiations. But Allied Pilots Association spokesperson Greg Overman says flexible is not the word his union would use.

Overman: To the contrary, what we have seen is pretty much along the lines of “take it or leave it.” It certainly appears to us that they are seeking to use the bankruptcy process to have our collective bargaining agreement rejected. And if they are successful at doing so, they tehn would be able to impose substandard terms of employment on our pilots.

Without being specific, the union says it will use all available legal means to strongly resist that outcome.

Bill Zeeble has been a full-time reporter at KERA since 1992, covering everything from medicine to the Mavericks and education to environmental issues.